Busy. Please wait.

show password
Forgot Password?

Don't have an account?  Sign up 

Username is available taken
show password


Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account.
We do not share your email address with others. It is only used to allow you to reset your password. For details read our Privacy Policy and Terms of Service.

Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
Don't know
remaining cards
To flip the current card, click it or press the Spacebar key.  To move the current card to one of the three colored boxes, click on the box.  You may also press the UP ARROW key to move the card to the "Know" box, the DOWN ARROW key to move the card to the "Don't know" box, or the RIGHT ARROW key to move the card to the Remaining box.  You may also click on the card displayed in any of the three boxes to bring that card back to the center.

Pass complete!

"Know" box contains:
Time elapsed:
restart all cards
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

Financial Acct Ch 15

Most companies generate cash from their operations. this can can be use for 1. investing in current operation2. investing in temporary investments to earn additional revenue3. investing in long-term investments in stock of other companies for strategic reasons
investments are made with left over cash
Invest in: temporary- marketable securities, sell quicklylong term - intend to keep
instead of letting cash remain idle, most companies invest. invest in securities: debt securitiesequity securities
debt securities are notes and bonds that pay interest and have a fixed maturity date
equity securities which are preferred and common stock that represent ownership in a company and do not have a fixed maturity date
Investments or Temporary investments are reported in the current assets section of the balance sheet
the primary objective of investing in temporary investments is to 1. earn interest revenue2. receive dividends3. realize gains and increase in the market price of the securities
investments in certificates of deposit and other securities that do not normally change in value are disclosed on the: balance sheet as cash and cash equivalents
four reasons you buy stock of another company 1. reduction of cost2. replacement of management3. expansion4. integration
accounting for bond investments includes recording the following perchase of bondsinterest revenuesale of bonds
Purchase of Bonds: the purchase of bonds is recorded by debiting an investments acct for the purchase price of the bonds. if the bonds are purchased between interest dates, the purchase price includes accrued interest since the last interest payment.
Created by: inkybu89